Ideal Phone Conference: Monthly deliveries of 40,000 vehicles can be achieved in the fourth quarter, making it the top luxury car brand in terms of sales next year.

On the afternoon of August 8, Beijing time, Li Auto released its second-quarter earnings as of June 30, 2023. Financial Report, Li AUTO-W achieved revenue of 28.65 billion yuan this quarter, exceeding market expectations of 27.21 billion yuan, up 228.1 from 8.73 billion yuan in the same period last year and 52.5 from 18.79 billion yuan in 23Q1. Q2 achieved a net profit of 2.31 billion yuan, the best profit level in history, compared with a loss of 0.641 billion yuan in the same period last year. A total of 86,533 cars were delivered this season, a record high. Looking ahead to the third quarter, LI AUTO-W expects deliveries to reach 10-103000 units. After the release of the financial report, Li Xiang, chairman and CEO of LI AUTO-W, and other senior executives attended the subsequent conference call to interpret the financial report and answer questions from analysts. Li Xiang said that the sales guidance for the third quarter is already the limit of current production capacity, and it is expected that there will be "no problem" with the monthly delivery breakthrough 40000 after the production capacity increase in the fourth quarter ". In addition, he also said that Li AUTO-W is confident to challenge BBA's sales in the Chinese market and is expected to become the number one luxury brand in China next year. * * Q1: Why can't the delivery guidelines for the third quarter break through the bottleneck, only 100000-103000 vehicles (33300-34300 vehicles per month) * * A: At present, Changzhou has two production lines producing L789, with a maximum monthly production capacity of 50000 units for double shifts. The main bottleneck lies in the supply of spare parts. In this regard, LI AUTO-W has formulated the upgrading strategy and plan of relevant parts in Q2, but it will take some time for the production line and tooling debugging and verification of parts. In addition, LI AUTO-W has also made plans and preparations in advance for the production capacity of the following year. Q2: What is the progress of automatic driving technology? When will consumers be able to directly experience automatic driving when buying a car? A: We will open it in batches according to the previously established plan. If it is open, the logic and sequence will largely determine the number of local Li Auto. The more volume, the more miles traveled, and the more test data related to autonomous driving, the city is likely to open up earlier. In addition, it will also depend on the completion of complex road conditions in the city. We have now opened up some recruiting users. With the addition of these recruiting users, our open cities will gradually increase. At present, the overall development and testing are progressing smoothly. Based on the large model full landing intelligent driving, we are confident that next year we can get the city and high-speed NOA all through, the whole process open. Research and development and testing are still ongoing. * * Q3: LI AUTO-W is currently leading in the range of large household 300000 and above. If potential products are to be put in the price range of 20-300000 yuan next year, they will face very fierce competition. How will they differentiate their products and maintain their competitiveness? **A: We are very confident in the product strength of LI AUTO-W l6 and believe that L6 will become the model with the highest monthly sales volume in LI AUTO-W L series. The most critical point is actually to adhere to our competitiveness, so it must be the absolute first choice for home users at the same price. (Updating)